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Amazon will pay $62 million over deceptive delivery tips claims

The company said it would pay delivery drivers up to $25 hourly plus tips, but the FTC had alleged it kept a third of tips.

The Amazon logo on a building

Amazon took a third of tips it promised to delivery drivers, according to an FTC finding.

Image: Yender Gonzalez

Amazon will pay almost $62 million to settle allegations by the U.S. Federal Trade Commission that it avoided handing over the full pay and tips it promised to delivery drivers, according to the agency.

The company is giving back the amount it kept, according to a complaint released earlier this year by the agency, after it told Amazon Flex drivers and customers in 2015 it would pay $18 to $25 hourly plus tips. Instead, beginning the following year, it used tips to supplement lower base pay rates, and tried to hide the changes, according to the FTC.

"For a period of over two and a half years, without consumers' permission, Amazon secretly used nearly a third of customer tips to subsidize its own pay to drivers," the FTC had found.

Under the 20-year settlement, Amazon will also need consent from drivers to change their pay scheme. All commissioners voted unanimously to approve the settlement.

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